Income tax debate opens up in WA Legislature
Washington Gov. Bob Ferguson and Democrats in the state Legislature are divided over how to use the expected revenue from a newly proposed income tax on higher earners.
Lead lawmakers in the House and Senate unveiled the legislation Tuesday.
It calls for a 9.9% tax on personal adjusted gross income over $1 million. Income below that level would not be subject to the tax. The levy would take effect Jan. 1, 2028, with first payments due in April 2029. Backers estimate the tax would raise about $3.5 billion a year, roughly equivalent to a little less than 10% of the state’s current annual operating budget.
Democratic lawmakers and the governor agree revenue from the proposed tax should go toward tax relief, both for individuals and businesses. But less than two hours before legislators rolled out their proposal Tuesday morning, Ferguson, who is also a Democrat, blasted out a statement saying he did not support the bill in its current form because it does not do enough on this front.
https://washingtonstatestandard.com/2026/02/03/ferguson-rejects-wa-lawmakers-initial-crack-at-income-tax-legislation/